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Under the Basel III capital adequacy framework, Newton Bank has estimated the following information (in millions). Total regulatory capital 140 Credit-risk weighted assets 800 Market-risk
Under the Basel III capital adequacy framework, Newton Bank has estimated the following information (in millions). Total regulatory capital 140 Credit-risk weighted assets 800 Market-risk weighted assets 320 Operational-risk weighted assets 450 (i) Calculate Newton Bank's total risk-based capital ratio. (2 marks) (ii) Does Newton Bank have sufficient total regulatory capital to meet the Basel III minimum capital requirements (including the capital conservation buffer)? (2 marks) Under the Basel III capital adequacy framework, Newton Bank has estimated the following information (in millions). Total regulatory capital 140 Credit-risk weighted assets 800 Market-risk weighted assets 320 Operational-risk weighted assets 450 (i) Calculate Newton Bank's total risk-based capital ratio. (2 marks) (ii) Does Newton Bank have sufficient total regulatory capital to meet the Basel III minimum capital requirements (including the capital conservation buffer)? (2 marks)
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